Buy a Condo That is Not VA Approved

Single family detached home values have risen so sharply in so many markets around the US, that often times a condo or town home makes the most sense to stay on budget.

Attached properties that are titled as a condominium must have the HOA approved by the Dept of VA in order to use VA financing.  It should be noted that many properties classified as Townhomes are actually titled as condominiums and require approval.

This HOA approval process through the VA sounds complicated, but the VA primarily evaluates the following:

Financial Solvency. The VA wants to be assured the HOA has a reasonable amount of funds in a “Reserve Account” to maintain the Common Area.
The VA wants to be assured there are no Special Assessments nor any Pending Litigation (i.e., “lawsuits”) which affect the Project.

CC&RS. The VA will review the recorded Declaration of Restrictions (“CC&RS”) to assure compliance with VA Regulations, including that the HOA lien for assessments is subordinate to the lien of a First Mortgage or First Deed of Trust.

In addition, the VA will confirm that CC&RS do not include any restrictions on the VA Buyer’s ability to rent their home if they are deployed or received orders to report to a new Unit.